Health care reform could mean fewer hours for some workers

Businesses with more than 50 workers may have to adjust their employees’ hours this year to fall in line with federal health care rules.

Amanda Memrick

Businesses with more than 50 workers may have to adjust their employees’ hours this year to fall in line with federal health care rules.

Under the Affordable Care Act, sometimes dubbed “Obamacare,” a full-time worker is someone who averages 30 hours of work a week. The law requires employers to provide health care to all full-time employees.

Before now, there was no legal definition of part-time and full-time work. It was up to employers to decide how many hours fit each qualification. Some employers considered people part-time employees if they worked 32 hours or less. Others dubbed 35 hours or less part-time work.

The law now says part time means someone working 29 hours or less.

“This definition really only impacts the health insurance plan,” said Kimberly C. Richards, governmental affairs coordinator for Gaston HR, the local affiliate of the Society for Human Resource Management.

Each business will have to evaluate what’s in its own best interest, but Richards said she knows some companies are cutting back their hours to keep employees part time.

Companies will also have to deal with more paperwork as employers are required to keep track of each employee’s hours throughout the year. It can be complicated for companies when employees are full time part of the year and part time for a portion of the year, Richards said.

Local businesses

Montcross Area Chamber of Commerce President Ted Hall said he’s heard a lot of concern from people who aren’t going to fall under the health care requirement.

“Our members are small businesses nowhere near 50 employees,” Hall said.

A large number of the chamber’s business members have less than 10 employees, he said.

A few members who have between 50 and 200 employees will have to adjust, but Hall said most of the large businesses are accustomed to regulations and prepared to do the research to make needed changes.

Those businesses in the 50- to 70-employee range are the ones that could struggle to keep up with the complicated record keeping and decisions about what to do to comply with the law, he said.

Those businesses with fewer than 50 employees will have some opportunities that might allow them to purchase health insurance for employees, Hall said.

Small business will have access to the new insurance marketplace starting Jan. 1. That could allow small businesses to get higher-quality health coverage at a lower cost.

Small business reigns in Gaston

The majority of Gaston County businesses fall under the “small business” category of having 50 employees or less.

The bulk of the county’s companies — 94 percent — has less than 50 employees, according to a 2011 census that looked at county business patterns.

But Gaston County’s 223 employers with more than 50 employees will be responsible for providing health care for their full-time employees.

Most of Gaston County’s workforce — 62 percent of workers — have a full-time job. Of those full-time workers, 78 percent received employer-based health insurance, according to 2011 census data.

When it comes to part-time workers, 42 percent get employer-based health insurance.

Advice for businesses

“Read as much as you can, but get advice,” Richards said.

Companies should make sure they partner with their healthcare providers to know the rules because guidance continues to evolve as the date for compliance nears. All businesses must comply with the health-care law beginning in 2014.

Employers should take a comprehensive look at their options, she said.

One option is offering health insurance to everyone who’s now eligible.

Companies could opt to pay the fine and increase employees’ pay or benefits to compensate.

Or companies could decide to cut hours so the workers who weren’t eligible for health care before but now qualify stay part time under the law.

You can reach Amanda Memrick at 704-869-1839 or twitter.com/AmandaMemrick.